US regulators delay Qualcomm board meeting to review Broadcom bi
By Donna Borak
WASHINGTON (CNNMoney) -- A hostile takeover of the chip maker Qualcomm is on hold while American regulators examine it for national security concerns.
The government late Sunday asked Qualcomm, based in San Diego, to delay its annual shareholder meeting by 30 days. The meeting, scheduled for Tuesday, was supposed to determine whether Singapore-based Broadcom could advance its bid to buy the company.
Broadcom's latest offer is $117 billion for Qualcomm. Qualcomm has warmed to the deal but says the offer is too low. In a bid to take control, Broadcom wants to elect six nominees to Qualcomm's board, giving it a majority.
Now the takeover attempt is on hold while an obscure government panel examines it from a national security perspective. It's an unusual intervention by US regulators at this stage in the takeover process.
The Committee on Foreign Investment in the United States, a panel of federal agencies headed by the Treasury Department, has the authority to examine foreign investments in American companies to make sure they don't threaten national security.
The committee usually waits until after a deal is done to check it out. But CFIUS has been more active in recent years. And, if it goes through, Broadcom's bid for Qualcomm could be the largest technology deal in history.
In November, Broadcom announced that it would move its legal headquarters back to the United States from Singapore. Four days later, it announced the bid for Qualcomm.
Broadcom says Qualcomm secr....